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ARTICLE · 16 FEBRUARY 2017

A PPSA decision on distributing value in accordance with the law

KordaMentha
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The decision reinforces the need for creditors to properly register their security interests to protect their collateral.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Robert Hutson
Robert Hutson
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1. Overview

At KordaMentha we focus on protecting and recovering value for creditors, but we also play a critical role in distributing that value to creditors in accordance with the law.

The recent judgement, In the matter of OneSteel Manufacturing Pty Limited (administrators appointed)1 , confirmed our decision as Administrators of OneSteel Manufacturing to reject the PPSR registrations of Alleasing Pty Limited and consequently determine that assets rented to OneSteel Manufacturing by Alleasing had vested in OneSteel Manufacturing for PPSA purposes immediately prior to the appointment of Administrators. The Court's decision provides useful guidance and confirms a number of important principles about the PPSA and the consequences of defective registrations.

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